Fraud prevention startup Sift Science raises $53 million to expand its global footprint in the fraud detection and prevention market

According to 2017 Global Fraud Index, $57.8 Billion in eCommerce fraud losses were reported across eight major industries. In a separate report, e-commerce fraud increased to 33% in 2016 compared to 2015 according to Experian data. One startup is leading the effort to fight fraud using real-time machine learning (ML). Sift Science is a San Francisco, California-based is the leading provider of fraud prevention and risk management solutions. The company applies insights from a global network of data to detect fraud and increase positive user experience.

To further expand its global footprint in the fraud detection and prevention market, the company announced today it has raised a $53 million Series D funding round. The current round is led by Stripes Group, a New York-based growth equity firm, with investments in SPINS, Remitly, Flatiron Health, Udemy, GrubHub and more. Prior investors Union Square Ventures, Insight Venture Partners and Spark Capital also participated in the round, bringing the company’s total funding to $107 million.

Founded in 2011 Brandon Ballinger andJason Tan, Sift Science applies insights from a global network of data to detect payment fraud, content and promo abuse, fake accounts, and account takeover. Companies like Airbnb, Yelp, and Jet.com rely on Sift Science’s real-time machine learning to prevent fraud, slash operational costs, increase revenue, and create outstanding user experiences.  Sift Science is the only Digital Trust Platform in the world that learns and gets smarter in real time. When someone takes an action on your site, their platform recalculates that user’s risk score immediately. They also rescore users if they share fraud attributes with other companies on our platform. The solution helps Sift Science to detect and catch fraud before it happens. The company was recently recognized for its commitment to digital trust technologies through the 2017 MRC Technology Industry Award, 2017 CNP Best Anti-Fraud Solution and 2017 Phocuswright People’s Choice Award.

“We are very excited to be partnering with the Sift team to work towards their ambitious goal of building the first highly scalable trust and safety layer for the digital economy,” said Stripes Group Partner Ron Shah. “We believe Sift is uniquely positioned to leverage its best-in-class software platform and data network to fundamentally reshape the way businesses and consumers interact online – with more confidence, transparency and security. We are thrilled to be partnering with Sift as it accelerates its already exceptional growth trajectory.”

“Companies have always had to choose between protecting and growing their business. With Sift Science, they no longer need to make this trade-off – they can reduce risk while also improving customer experiences,” said Sift Science CEO and Co-founder Jason Tan. “Our Digital Trust Platform already protects world-leading digital brands from fraud. This investment will help us strengthen our global alliances and introduce our award-winning platform to enterprise organizations that rely on ineffective legacy fraud solutions.”

Brands such as Twitter, Airbnb, Yelp!, Shutterstock, Jet, Indeed and Wayfair rely on the cloud-based Sift Science Digital Trust Platform for its global network of fraud data and unique ability to detect and prevent bad actors with unparalleled speed, scale and sophistication.

The Sift Science Digital Trust Platform, featuring Live Machine Learning™, hosts a full suite of fraud prevention products, providing a holistic solution that protects businesses from all vectors of fraud and abuse including payment fraud, account takeover, fake accounts and abusive user-generated content. The dynamic platform learns from user behavior across the Sift Science global digital trust network –– 6,000+ online properties and growing ––to score users’ trustworthiness in real time.